Tag: Motley Fool

The Titomic Ltd (ASX: TTT) share price is backtracking today despite a partnership agreement to boost revenue-generating opportunities.

At the time of writing, the company’s shares are trading at 60 cents, down 2.24%.

Headquartered in Australia, Titomic specialises in industrial-scale metal additive manufacturing using its patented Titomic Kinetic Fusion (TKF) technology. This allows the company to create high volumes of durable and light complex parts without shape or size constraints.

What’s driving the Titomic share price?

The Titomic share price is trading lower today despite the company’s moves to commercialise its TKF technology.

According to its release, Titomic advised that it has entered a partnership agreement with Pyne & Partners. The collaboration will help Titomic identify government funding and departmental partnership opportunities, mainly in the defence industry.

Under the deal, Pyne & Partners will provide services including:

• Identify and apply for government (including departmental and defence services) work and grants relevant to the defence and modern manufacturing portfolios;
• Identify and harness private sector partnership opportunities; and
• Provide Titomic with pro-active and ongoing government relations support involving its interests in the Federal Government and industry

Why Pyne & Partners?

Titomic noted that Pyne & Partners is focused on helping clients achieve business objectives and manage risk and has considerable knowledge in government policies and the defence sector.

The growing consultancy firm is led by Christopher Pyne, who served as the 54th Australian defence minister. Mr Pyne was responsible for delivering a $200 billion defence program to build up Australia’s military capabilities.

Management commentary

Titomic interim CEO Norbert Schulze welcomed the partnership, saying:

I am delighted to announce this agreement which will enhance Titomic’s recognition in the market and increase the speed in commercialising our new technology.

Pyne & Partners chair Christopher Pyne added:

Pyne & Partners is excited by Titomic’s cutting-edge manufacturing technology and looks forward to working with Titomic to grow the business through securing public and private sector revenue generating opportunities with a focus on the defence sector.

About the Titomic share price

The Titomic share price is down almost 40% compared to this time last year. The company’s shares sank to a low of 45 cents in December before continuing to move sideways.

Based on the current share price, Titomic has a market capitalisation of around $90 million.

More reading

• Why the EMvision (ASX:EMV) share price is going nowhere
• Why is the Fatfish (ASX: FFG) share price down 10% after posting profit?
• These are the latest ASX shares to be hit by broker downgrades
• Leading brokers name 3 ASX shares to buy today
• Is the NAB (ASX:NAB) share price a buy right now?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Titomic share price (ASX:TTT) slides lower despite positive update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37T0amA

EMvision Medical Devices Ltd (ASX: EMV) shares are unchanged today after the company announced a trading halt before market open on Friday. At the close of market on Thursday, the EMVision share price was trading at $2.42. 

Let’s take a look at why the small cap medical imaging company requested the pause in trading.

Why are EMVision shares paused?

The EMvision share price was brought to a standstill on Friday morning pending a further announcement by the company. EMvision has advised it is awaiting the outcome of a grant funding application and has requested its shares remain in the halt until the announcement is made or the commencement of normal trading tomorrow.

How has EMvision been performing?

Last Thursday, the EMvision share price was being pushed higher after the release of the company’s half-yearly report for the period ending 30 December 2020.

EMvision reported strong revenue performance, delivering revenue of $1.67 million which was up 48% on the prior corresponding period (pcp). Nonetheless, this did not stop the company from posting a widening loss as it reported outflows of $3.21 million, up 78% on the pcp.

During the half, the company had grant income of $0.36 million, while it also received government support of $50,000. Operating expenses were principally made up of research and development costs associated with its technology.

Operating cash outflows for the half year were $1,059,119. However, thanks to the issuing of new shares financing, cash inflows came in at $8.7 million. As such, the company had a net asset position of $12.9 million as of 31 December 2020.

Commenting on the company’s progress, management stated that:

As an early stage company, the company’s business model is highly dependent on the achievement of continued technical development success as well as future funding, customer engagement and general financial and economic factors.

About the EMvision share price

It has been an average six months for the EMvision share price which has seen a rise of 7.56%. In comparison, the All Ordinaries Index (ASX: XAO) has returned 12.2% over the same period.

EMvision is an Australian company focused on the development and commercialisation of medical imaging technology. Primarily, it is focused on developing a cost-effective, portable, medical imaging device using electromagnetic microwave imaging for diagnosis and monitoring of stroke and other medical applications.

Based on the current EMvision share price, the company has a market capitalisation of around $171 million.

More reading

• Why is the Fatfish (ASX: FFG) share price down 10% after posting profit?
• These are the latest ASX shares to be hit by broker downgrades
• Leading brokers name 3 ASX shares to buy today
• Is the NAB (ASX:NAB) share price a buy right now?
• What’s with the Botanix (ASX:BOT) share price today?

Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of EMvision Medical Devices Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the EMvision (ASX:EMV) share price is going nowhere appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3svnyhQ

The Fatfish Group Ltd (ASX: FFG) share price is under pressure today despite posting its first profit in 4 years. The tech venture builder company’s shares are currently swapping hands at 13.5 cents. This is down 10% on yesterday’s close.

The Fatfish share price drop follows the release of the company’s preliminary final report for FY2020.

What was in the report?

For the 12 months ended 31 December 2020, Fatfish Group reported a net profit after tax of $191,000. This compares to a loss of more than $14 million net in the prior corresponding period (pcp).

The gross profits, however, are more precarious. The group went from $1.1 million in the pcp to $519,000 in FY2020. This calculates at a 54% drop over the two periods. Meanwhile, operating costs were down from $1.6 million in the pcp to $180,000. Sales fell from $2.7 million to nearly $700,000.

The nearly $2 million drop in revenue can be attributed to a cessation of online sales. A $167,000 drop in income from cryptocurrency mining is balanced out by a rise in interest revenue and services income.

The large difference between gross and net profit mostly stems from a $10.6 million loss in unrealised gains on investments at fair value to a $1.7 million positive.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the year was at $526,000. Net assets increased by 57% on the pcp to total $18.2 million.

Earnings per share (EPS) were reported at 0.26 cents. This compares to a 1.73 cent loss in FY2019.

The company did not pay a dividend for the period.

Mergers and partnerships

In today’s report, Fatfish group also announced its subsidiary, Fatfish Global Ventures, has merged with Abelco Investment Group AB. As a result, Fatfish Group now owns a controlling stake (50.1%) of Abelco Group.

In a separate statement, Fatfish announced it was entering into a strategic partnership agreement with KryptoPOS – a cloud-based point-of-sale (POS) software company with operations in Malaysia and Indonesia. Through its subsidiary, Smartfunding, Fatfish will roll-out its buy now, pay later (BNPL) service to merchants using the KryptoPOS software.

The release said the partnership entailed sharing behavioural and data analytics between KryptoPOS and Smartfunding (according to consent and privacy laws), allowing Smartfunding to improve its credit analysis capability and pre-approve merchants with good credit standing for its BNPL services.

The partnership would involve a revenue-sharing arrangement entitling KryptoPOS to 15-30% of the net revenue for the transactions originated via the strategic partnership.

Words from the CEO

Commenting on the financial results, Fatfish CEO Kin Wai Lau said:

Financial year 2020 is a very interesting period for the Fatfish Group, with the group making its first profit since 2017.

Having concluded and secured our majority controlling stake in Abelco, the management is hopeful about opportunities we have in the innovation hot-bed of Nordic countries in Europe.

He went on to say that the company was excited to continue to grow its businesses, especially the recently launched BNPL services offered by Smartfunding and the online insurance of Fatberry.

We have a very capable and localised team that understands the tech landscape of Southeast Asia well, and this in (sic) shall position us well for the expansion of our core business over the next 18-24 months.

Fatfish share price snapshot

Despite today’s rocky showing, the Fatfish share price is trading substantially higher than this time last year. In early March 2020, shares in Fatfish were trading at 1 cent each – a 1400% increase!

The majority of this rise has occurred over the past month. The Fatfish share price was trading at 3 cents at the beginning of February before hitting a high of 27 cents on 16 February.

More reading

• What’s going on with the Fatfish (ASX:FFG) share price today?
• Why the Fatfish (ASX:FGG) share price is charging 10% higher
• Why the Cirralto (ASX:CRO) share price is in a trading halt
• What’s with the Afterpay (ASX:APT) share price fall today?
• Why the Fatfish (ASX:FFG) share price is diving 21% today

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why is the Fatfish (ASX: FFG) share price down 10% after posting profit? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sASJID

The market bounced from the Friday sell-off but this didn’t stop top brokers from downgrading a number of ASX shares today.

The S&P/ASX 200 Index (Index:^AXJO) jumped 1.5% in after lunch trade to 6,765 points with all sectors bar materials trading in the black.

Even the Orica Ltd (ASX: ORI) share price is recovering from its disappointing market update and the retirement of its chief executive.

Earnings getting blown down

The news was enough to prompt Macquarie Group Ltd (ASX: MQG) to downgrade the explosives and chemical maker to “neutral” from “outperform”.

The broker lowered its rating on the Orica share price after management warned that its first half earnings before interest and tax (EBIT) would take a $105 million to $125 million hit.

Impact from COVID-19 played a large part but the weak Chinese thermal coal market and unfavourable exchange rates also weighed.

Uncertainty prompts broker downgrade

“We lower our recommendation to Neutral, given the lack of earnings visibility, CEO transition and tightened balance sheet metrics,” said Macquarie.

“Investors are likely to focus on post-COVID earnings in FY22 and FY23; however, ORI needs to get through FY21 first.”

The broker’s 12-month price target on the Orica share price is $13.65 a share.

When good isn’t good enough

Another stock to be hit by a broker downgrade is the Harvey Norman Holdings Limited (ASX: HVN) share price.

Goldman Sachs lowered its recommendation on the Harvey Norman share price to “neutral” from “buy” even after the electronics and furniture retailer posted a solid profit result.

Harvey Norman has been a COVID winner with stuck-at-home consumers buying stuff for their homes.

Earnings upgraded but recommendation downgraded

The big rebound in the residential housing market is another boon for the Harvey Norman share price. New homes require new furniture.

Goldman lifted its net profit forecast for the group by 12.2% in FY21 due to pandemic spending and 17% in FY22 due to the housing boom.

“While the housing cycle is likely to provide some buffer to the earnings outlook over FY22 and FY23, the peak trading seen in the June quarter 2020 to March quarter 2021 are unlikely to be sustained, in our view,” said Goldman.

“Despite the upgrade, we forecast FY22 EBIT to decline 30% on FY21.”

The broker’s 12-month price target on the Harvey Norman share price is $5.10 a share.

More reading

• Leading brokers name 3 ASX shares to buy today
• What bulls and bears say about the Macquarie (ASX:MQG) share price
• ASX 200 up 1.5%: Afterpay & Zip jump, Fortescue tumbles
• Has the Harvey Norman (ASX:HVN) share price peaked?
• These were the worst performing ASX 200 shares in February

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These are the latest ASX shares to be hit by broker downgrades appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3q5rNiq

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Afterpay Ltd (ASX: APT)

According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted the price target on this payments company’s shares to $150.00. The broker made the move after Afterpay delivered further strong growth in the United States and United Kingdom during the first half. Looking ahead, Ord Minnett believes the launch of the Afterpay Money app will strengthen appeal to young consumers. The Afterpay share price is fetching $126.28 on Monday.

BWX Ltd (ASX: BWX)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this personal care products company’s shares to $5.30. According to the note, the broker was pleased with its half year results and guidance for the full year. It also notes that the company has signed a deal with Chemist Warehouse and Woolworths Group Ltd (ASX: WOW). The latter means its Sukin products are now ranged in Australia’s two largest supermarkets. The BWX share price is trading at $4.43 this afternoon.

Harvey Norman Holdings Limited (ASX: HVN)

Analysts at Citi have retained their buy rating and $6.00 price target on this retail giant’s shares following its first half results. According to the note, Harvey Norman delivered a strong half year update, which was in line with the broker expectations. And while its growth will slow in the second half, the broker still believes its shares offer value for money at the current level. The Harvey Norman share price is fetching $5.26 on Monday.

More reading

• Here’s how much Afterpay (ASX:APT) rival Klarna is worth now
• Why Afterpay, Austal, Reece, & Service Stream shares are racing higher
• ASX 200 up 1.5%: Afterpay & Zip jump, Fortescue tumbles
• BNPL providers like Afterpay (ASX:APT) set for increased regulation
• Will the Afterpay (ASX:APT) share price go higher in 2021? Here’s what Goldman Sachs thinks.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3r8amiA

The National Australia Bank Ltd (ASX: NAB) share price has gone up by more than 9% so far in 2021. Is it a buy right now? Some brokers have had their say.

What’s happening right now with NAB?

The NAB share price is moving about with a bit of volatility at the moment as markets react to the opposing thoughts about interest rates.

On the one hand, RBA governor boss Dr Lowe said that he doesn’t expect the official cash rate to rise for at least three years, unless the economy manages to recover sooner.

However, before today, bond yields had been climbing. The Australian Financial Review quoted Tamar Hamlyn from Ardea Investment Management:

The earlier part of the move was driven by rising inflation expectations because one of the components for bond yields is compensation for inflation. More recently, the increase in bond yields has continued and it has come about by an increase in real yields. If people think that economic growth is going to improve, then real returns – economic growth after inflation – are likely to improve across the entire economy because it’s easier to generate positive returns when the global economy is growing.

It was only a couple of weeks ago that the big four ASX bank released its FY21 first quarter update.

FY21 first quarter

The NAB share price responded positively after revealing it made $1.7 billion of statutory net profit and $1.65 billion of cash earnings.

NAB explained that improving economic trends have been a key driver of the first quarter result, with cash earnings 47% higher than the FY20 second half quarterly average primarily driven by low credit impairment charges. The bank said that at an underlying level, performance has been sound in the current competitive, low interest rate environment.

It said that it made 1% cash earnings growth compared to the first quarter of FY20. However, cash earnings before tax and credit impairment charges were down 6%.

But it still isn’t plain sailing yet, according to the bank’s CEO, Ross McEwan, who said:

Improving economic and health outcomes in Australia and New Zealand are encouraging, as are the reductions we are seeing in deferral balances. However, there are still a number of uncertainties regarding further clarity. These include the impact on customers of ongoing health alerts and measures put in place to contain the spread of COVID-19, and the wind-down of deferral and jobkeeper programs. Supporting customers and keeping the bank safe through this period remain our priorities.

Broker thoughts

UBS said that its cash net profit was better than expectations due to the fact that impairment charges were lower. It was the lowest impairment charge since it started giving quarterly earnings updates over a decade ago. Its balance sheet was stronger than expected, with a common equity tier 1 (CET1) capital ratio of 11.7%. UBS has a NAB share price target of $27.

Credit Suisse is another broker that has a share price target of $27 for NAB shares. The broker has decreased its expectations of bad debts for NAB, meaning it’s now expecting higher profit from NAB.

Both brokers think that NAB shares are currently a buy.

More reading

• ASX 200 Weekly Wrap: Friday carnage ruins last week of ASX earnings
• ASX investors watch out for a rise in interest rates in 2022
• ASX 200 Weekly Wrap: ASX lower despite bumper dividends
• Westpac (ASX:WBC) share price on watch as it delivers $2bn quarterly profit result
• ASX 200 rises 0.7%, Redbubble sinks, BHP dividend jumps

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is the NAB (ASX:NAB) share price a buy right now? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3q1lMTV

Botanix Pharmaceuticals Ltd (ASX: BOT) shares are flat today following the company’s release of its FY21 half-year results on Friday night. At the time of writing, the Botanix share price is trading at 11 cents, the same price at which it closed Friday’s session. 

It seems the weekend has given shareholders plenty of time to digest the pharmaceutical cannabinoid company’s numbers, leaving them indifferent.

Botanix share price fails to ignite

Due to the pre-revenue nature of pharmaceutical development, Botanix is heavily reliant on non-operational income. And today, the Botanix share price is languishing after the company recorded a 14% decrease in its operational revenue to $88,871.

As a result, the company significantly reduced its expenditure during the half, particularly on employee benefits and research and development (R&D) expenses. The addition of a considerable $6.88 million R&D incentive scheme refund also enabled the company to deliver a profit of $664,129 for the half.

Botanix continued working on the development of its range of treatments including BTX 1801, BTX 1702, and BTX 1503. In February, the company announced positive data from its BTX 1801 Phase 2a nasal decolonisation proof of concept study.

Other news

Today, Botanix also announced the expansion of its management team with the addition of three new hires in the United States. The company advised the purpose of the new roles is to drive its antimicrobial and dermatology programs.

The new hires will assume the positions of chief medical officer, vice president, and head of commercial. These additions also come with the termination of executive director Michael Thurn.

Botanix mentioned in the announcement that recent positive data from its BTX 1801 antimicrobial study underpins the acceleration of the company’s commercial capabilities.

Botanix share price under the microscope

Botanix is in the clinical development of synthetic cannabinoid pharmaceuticals. The company’s primary focus is on dermatology and antimicrobial applications.

Despite the volatility, the S&P/ASX 200 Index (ASX: XJO) has now returned around 5.7% to investors in the past year. In comparison, the Botanix share price has netted shareholders more than 57% returns over the same period, a return nearly ten times that of the index.

However, in less positive news, Botanix shares have slipped by around 35% over the past month. 

More reading

• Botanix (ASX:BOT) share price falls despite big tax refund
• Why the Botanix (ASX:BOT) share price is rocketing 31% higher today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post What’s with the Botanix (ASX:BOT) share price today? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2MzMkyb

The Magnis Energy Technologies Ltd (ASX: MNS) share price is shooting higher today. This comes after the battery technology company released positive initial results for its fast charging (FC) battery program.

During afternoon trade, the company’s shares are up 12.07% to 33 cents. In the first hour of trade this morning, the Magnis share price reached as high as 35.5 cents.

Magnis share price rises on significant results

The Magnis share price is on the move today as investors appear upbeat following the company’s latest update.

In its announcement, Magnis reported that it has received initial successful test results in its FC battery program. Using optimised cells developed by partner company Charge CCCV, Magnis achieved 93% battery capacity retention after 600 cycles. This occurred by the company adopting a 30-minute charge and 30-minute discharge process.

Magnis advised that following the excellent outcome, it has moved to more aggressive tests with extra fast charging (EFC) batteries. The new test work will aim to attain an 85% charge within 6 minutes.

Magnis explained that its EFC tests are using optimised cells that have 99% energy density of a regular iM3 energy cell. This means that an FC battery cell can slow down energy density loss when compared to a traditional battery cell.

Market opportunity

Charge CCCV (which is the technology partner of Magnis) is engaged with commercial electric vehicle manufacturers to develop a low-cost sustainable EFC battery.

As announced in July last year, Charge CCCV will provide batteries for a New York demonstration bus trial, with the EFC system to be installed on some New York City bus routes. The program’s purpose is to create a more environmentally friendly transportation alternative operating in one of the world’s busiest cities. It’s estimated that if the system is deployed city-wide, over 500,000 metric tonnes of carbon dioxide will be removed each year.

The EFC cells to be used in the bus program are expected to be completed and delivered sometime this week.

What did the head of Magnis say?

Magnis chair Frank Poullas hailed the milestone results, saying:

We are really excited by this technology from Day 1 as it will be a game changer for the commercial transport industry. Today’s announced results are an early step forward toward turning this technology into a commercialised product.

The Magnis share price has accelerated by more than 300% over the last 12 months.

More reading

• Here’s why the Magnis (ASX:MNS) share price surged 15% this morning

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Magnis (ASX:MNS) share price is powering up 12% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3kx5C3w

Regional Express Holdings Ltd (ASX: REX) shares are lifting off today following the release of the airline’s half-year (1H21) results. At the time of writing, the Rex share price is trading 2.84% higher at $1.63 a share.

Let’s take a look at how the company has been performing.

What’s driving the Rex share price?

The Rex share price is on the rise today despite the airline reporting that its passenger numbers decreased by 71.2% for the period due to coronavirus travel restrictions.

Revenue (excluding government grants and subsidies) for the half sank by 60.5%, or $100.6 million, to $65.6 million compared to 1H20 revenue of $166.2 million.

However, Rex’s total 1H21 revenue including government grants and subsidies was $125.1 million.

Net profit for 1H21 jumped 43.5% to land at $9.9 million vs $6.9 million for 1H20.

In other news boosting the Rex share price, the company’s earnings per share (EPS) popped up to 9 cents for the 1H21 period from 6.2 cents in the prior corresponding half.

Total assets at the end of the first half came in at $274.2 million, compared with $252.8 million in total assets in 1H20.

CEO comments 

Commenting on the airline’s results, Rex executive chair Lim Kim Hai said: 

The COVID pandemic has completely devastated every passenger airline and has been the most significant set-back the global airline industry has ever experienced in its history. Rex would have been obliged to shut down over 90% of its network if not for various federal and state governments assistance programmes…

Rex’s regional operations in 2H FY21 are only expected to be marginally improved compared to the first half as the roll out of vaccination from March is not expected to make a significant difference until the new financial year. Should this eventuate, then the expected cessation of all government assistance packages in the final quarter of this FY will mean that the Group is expected to incur significant losses in that period.

The board did not declare a dividend and Rex did not provide any guidance due to the “extreme volatility” the company is facing.

Rex share price snapshot 

The Rex share price has climbed by more than 50% over the past six months and more than 65% over the past year.

Based on the current share price, the company’s market capitalisation is approximately $174.6 million. Rex currently has 110.2 million shares outstanding.

More reading

• Why did Qantas (ASX:QAN) shares soar 4% on Tuesday?

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Regional Express (ASX:REX) share price takes off despite loss warning appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2PcTrgM

The Tesserent Ltd (ASX: TNT) share price is tanking today despite the company reporting a significant lift in revenues and earnings during its first half in FY21.

At the time of writing, the Tesserent share price is down 20.6% to 25 cents a share.

High growth not enough for Tesserent share price

Cybersecurity continues to be a focus area for many businesses and the Australian government. As our lives become more reliant and integrated with technology, the importance it has grows. The target on our critical data infrastructure has also expanded over time.

Consequently, many cybersecurity companies have been called into the fray over the last year as the issue becomes more prominent. The Australian Government also released its Cyber Security Strategy 2020, which will see $1.67 billion invested in the sector over 10 years.

The increased awareness of cybersecurity has aided in Tesserent’s year-over-year (YoY) turnover increase of 500% to $36.5 million.

Heading further down the income statement, operational earnings before interest, tax, depreciation, and amortisation (EBITDA) swung to a positive $2.9 million. This compares to the prior year’s $1.7 million loss.

Considering the falling Tesserent share price today, the question is why? A potential inhibitor could be the bottom-line statutory loss before tax. Due to acquisitions and the company’s employee share option plan (ESOP), losses increased to $6.18 million in the half. This a 55% greater loss than 1H FY20.

Acquisitions centre stage for future growth

Tesserent outlined that the second half will benefit from the inclusion of its recent New Zealand acquisition, Lateral Security. In addition, six months of revenue and earnings will fold into the second half from Seer Security, Airloom, Ludus Cybersecurity, and iQ3.

Furthermore, the company stated that all of its FY21 goals remained intact. Some of these include:

• Focus on capturing market share in three key markets: Government (including Defence), critical infrastructure and banking & finance
• Continuing to drive the company’s acquisition strategy to expand on Cyber 360 capabilities and increase shareholder value through incremental EPS growth
• Explore international expansion opportunities with a focus on Australia’s key Five Eyes allies, which consists of the United States, United Kingdom, New Zealand, and Canada.

Importantly, the company’s results are unaudited and could change upon review. Tesserent informed the market that it would relay any changes once solidified.

Taking in today’s losses, the Tesserent share price is still up a whopping 325% in the last year. The cybersecurity company has been riding the wave of enthusiasm for the sector since mid-2020.

More reading

• Why the MyFiziq (ASX:MYQ) share price is rising today
• Here’s why the Limeade (ASX:LME) share price is crashing 32% lower
• Elon Musk doubles down on promise to IPO Starlink
• Why is the Bellevue Gold (ASX:BGL) share price frozen?
• Why Fortescue, Genworth, Limeade, & Northern Star shares are sinking

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Tesserent (ASX:TNT) share price is sinking 20% on record revenue appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ku3ERG